Correlation Between Boot Barn and Live Ventures
Can any of the company-specific risk be diversified away by investing in both Boot Barn and Live Ventures at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Boot Barn and Live Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boot Barn Holdings and Live Ventures, you can compare the effects of market volatilities on Boot Barn and Live Ventures and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Boot Barn with a short position of Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boot Barn and Live Ventures.
Diversification Opportunities for Boot Barn and Live Ventures
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boot and Live is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Boot Barn Holdings and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures and Boot Barn is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Boot Barn Holdings are associated (or correlated) with Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of Boot Barn i.e., Boot Barn and Live Ventures go up and down completely randomly.
Pair Corralation between Boot Barn and Live Ventures
Given the investment horizon of 90 days Boot Barn Holdings is expected to generate 0.83 times more return on investment than Live Ventures. However, Boot Barn Holdings is 1.21 times less risky than Live Ventures. It trades about 0.08 of its potential returns per unit of risk. Live Ventures is currently generating about -0.14 per unit of risk. If you would invest 10,475 in Boot Barn Holdings on September 3, 2024 and sell it today you would earn a total of 3,239 from holding Boot Barn Holdings or generate 30.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boot Barn Holdings vs. Live Ventures
Performance |
| Timeline |
| Boot Barn Holdings |
| Live Ventures |
Boot Barn and Live Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boot Barn and Live Ventures
The main advantage of trading using opposite Boot Barn and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boot Barn position performs unexpectedly, Live Ventures can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Live Ventures will offset losses from the drop in Live Ventures' long position.| Boot Barn vs. Ross Stores | Boot Barn vs. Childrens Place | Boot Barn vs. Buckle Inc | Boot Barn vs. Guess Inc |
| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Kingfisher plc | Live Ventures vs. Haverty Furniture Companies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |